Labor no US rubber stamp: Latham

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Mark Latham has countered President George Bush's assault on his intention to withdraw Australia's troops from Iraq by defiantly declaring that Labor supports the alliance but will not be a "rubber stamp".

"Labor never wanted the troops there in the first place. We intend to have them home by Christmas," he said.

President Bush, in a direct intervention in the Australian election battle, said it would be "a disastrous decision for the leader of a great country like Australia to say that we're pulling out". It would dispirit Iraqis, signal that Australia didn't see the hope of a free and democratic society leading to a peaceful world, and embolden the enemy, he said. Mr Latham, in a toughly worded two-page statement, said Labor's policies on Iraq "will always put Australia's interests first".

His statement carefully made minimal direct reference to President Bush, and he did not elaborate later in the day. While the Opposition is unsure how the Bush comment will go down electorally, some sources believe that with support for Australia's Iraq commitment falling, the very strength of Mr Bush's comment could be counterproductive for the Government.

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But it is fortunate for Mr Latham that he cancelled the trip to the US he was planning for next week's Australian-American leadership dialogue.

Mr Howard refused to be drawn on the Bush broadside, saying: "He was asked a question (by an Australian journalist) and gave an answer to it. Obviously, he feels very strongly and I understand that," he said.

The Prime Minister said there was no daylight between the Australian and US positions on troops in Iraq. "Our objectives are the same and we both welcome the formation of the Iraqi interim Government," he said.

Mr Latham listed five ways in which he said the Government's policies were hurting Australia.

Australia had been made a bigger target; resources had been diverted from the real war on terror, which was catching Osama bin Laden, destroying al-Qaeda and breaking up terrorist networks in South-East Asia; the prisoner scandal had given the terrorists a significant win and a rationale to lure recruits; young Australians had been sent to war "to find weapons of mass destruction that didn't exist"; and the war and instability in the Middle East had contributed to record local petrol prices.

"The best role Australia can play in Iraq is through humanitarian, economic and civilian aid, not a long-term military role," Mr Latham said.

He said Labor strongly supported the American alliance, adding that he looked forward to the day "when we can put the mistakes of Iraq behind us" and a Labor government could work with the US to further strengthen the intelligence, strategic and cultural relationships between the two countries.

Former Opposition leader Kim Beazley took a swipe at President Bush. "The alliance means we work with all sides of US politics. I think the same should apply in reverse."